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Kenya vs Japan
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

🇰🇪 Kenya
vs
🇯🇵 Japan
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

Enter your annual income above to see your personal tax comparison →

Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
10–35%
Ruto administration fiscal consolidation; rates stable
No change
5–45%
Basic deduction increase for low earners
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
16%
16% maintained; exemption list under review
No change
8–10%
No rate change; digital services tax under review
No change

Corporate Tax Rate

Corporate Tax Rate
30%
30% stable; East Africa harmonization discussions
No change
~30.62%
Global Minimum Tax applies to large MNCs
No change

Capital Gains Tax

Capital Gains Tax
15%
15% property CGT unchanged
No change
20.315%
Expanded NISA (tax-free investment) ongoing
No change

Social Security & Payroll

Social Security / Payroll
~14%
Universal health coverage (SHA) replacing NHIF from 2024
No change
~28.5%
Coverage expansion to part-time workers ongoing
No change
State, Regional & Local Taxes

🇰🇪 KenyaCounty & Local Authority Taxes

Kenya's 47 counties levy business permits (single business permit), property rates, and various local service charges. County governments have own-source revenue from markets, parking, land rates, and entertainment taxes. The Kenya Revenue Authority (KRA) administers national taxes. A housing levy of 1.5% of gross salary (employer+employee) was introduced in 2023. The digital service tax (DST) at 1.5% on digital marketplace revenues was replaced by a significant economic presence tax framework.

🇯🇵 JapanPrefectural & Municipal Inhabitant Tax

Japan's 47 prefectures levy inhabitant tax (住民税) at a flat 10% on top of national income tax — 4% prefectural + 6% municipal. A reconstruction special income tax of 2.1% of national tax applies through 2037. Property acquisition tax and fixed asset tax (1.4% of assessed value) are levied locally. Large cities impose additional taxes on large businesses.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Kenya vs Japan: Key Tax Differences (2026)

💰 Income Tax: 🇯🇵 Japan has a higher top income tax rate (10–35% vs 5–45%). 🇰🇪 Kenya is more favourable for high earners.

🛒 VAT/Sales Tax: Kenya has a higher consumption tax (16% vs 8–10%).

🏢 Corporate Tax: 🇰🇪 Kenya offers a lower corporate rate (30% vs 30.62%), which can influence business location decisions.

📈 Capital Gains: 🇰🇪 Kenya taxes investment gains at a lower rate (15% vs 20.315%), benefiting investors.

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